Spirit Airlines reported mulling bankruptcy filing

Saturday, 04 Oct, 2024 0

Shares in Spirit Airlines sank by more than one-third as reports say the airline is mulling a bankruptcy filing.

Shares were down 37% as the WSJ reported a Chapter 11 filing was being discussed.

The airline’s value is down 85% this year, although the share price rallied slightly in afternoon trading.

Spirit has a heavy debt pile and has just weeks to refinance $1.1 billion in bonds which are due next year.

CEO Ted Christie said earlier this month the airline wouldn’t need to file for bankruptcy; however, it has taken measures to cut costs by cutting jobs and underperforming routes.

Its long-term debt is over $3 billion.

The WSJ reported Spirit was in talks with bondholders over a possible bankruptcy filing.

Spirit’s short-term future has been in doubt since the proposed $3.8 billion merger with JetBlue Airways was blocked.

The airline hasn’t reported a profit in the last five out of six quarters, despite high demand for air travel pushing up airfares.

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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